PRESENTER: Presenter
Jeff Jewell, Director of Economic & Community Development
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SUBJECT: Title
Discussion and possible action to approve the first amendment of the Purchase Contract between Mildred V. Bartels, Jerald D. Voges, and the New Braunfels Economic Development Corporation and an expenditure of up to $10,000 to extend the project feasibility period, pursuant to 505.102 of the Texas Local Government Code.
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DEPARTMENT: Economic & Community Development
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COUNCIL DISTRICTS IMPACTED: 4
BACKGROUND INFORMATION:
At the New Braunfels Economic Development Corporation (NBEDC) workshop on June 15th, 2023, the Board committed to a process to undertake predevelopment and feasibility work for the eventual development of the Gruene 16, Block 1, Lots 1-3 property. This property was purchased by the NBEDC in 2016 for HD Supply’s planned expansion, which the company did not ultimately pursue. The envisioned process works with key stakeholders to conceptualize the project and objectives, develop a basic “vision” for the project, determine the market demand for the project as envisioned, and develop high level building and infrastructure budget estimates to determine the overall feasibility of the development concept(s) that receive the most support. This is intended to be the first steps in the feasibility and development concepts stage, with a second stage proposed to ultimately solicit a developer and negotiate a development agreement to bring the project to fruition. The NBEDC Board directed staff to move forward with the proposal.
The NBEDC, at its regular meeting on August 17, 2023, approved an expenditure to Economic & Planning Systems, Inc. (EPS), to begin the planning for a possible public/private partnership addressing the Gruene 16 property.
EPS facilitated a workshop with the NBEDC Board in November 2023 and addressed objectives for the site, identified key questions for additional research, and established parameters for the next steps of the potential public/private partnership. EPS facilitated another workshop with the NBEDC Board in May 2024 and reviewed the completed feasibility study, City Council and NBEDC goals, economic, demographic, and market trends, discussed broker insights, highlighted opportunistic land uses, and reviewed themes and concepts discovered during the study.
The NBEDC approved Phase 2 funding at its July 18, 2024 meeting. Phase 2 included urban planning, test fitting the site, completing financial feasibility studies, and drafting a Request for Proposals/Request for Qualifications for solicitation of development proposals on the site.
Phase 2 identified the potential and significant contribution of available five parcels (total of ~8.7 acres) on Gruene Road - all adjacent to the Gruene 16 property- to the overall project and vision. EPS advised the addition of these parcels would greatly enhance development opportunities of the Gruene 16 project and yield greater flexibility in how the site could be developed. These parcels were then added to the urban planning and test fitting analysis. The inclusion of the parcels provides a greater footprint and yielded four different development scenarios with different development concepts and users.
On May 15, 2025, the NBEDC approved an initial amount of $75,000 to secure the additional parcels for a nine-month feasibility period ($50,000) and to cover due diligence costs for the properties ($25,000). These parcels were then included in the RFP/RFQ process for developer consideration. If notice of termination was provided before the initial feasibility period expired, $35,000 of the $50,000 earnest money would be returned to the NBEDC and $15,000 retained by the sellers.
At the February 19, 2026 regular meeting, the NBEDC approved an expenditure of $26,800 to extend the project feasibility period for an additional 90 days to continue project development, planning and negotiations with the development team. The initial nine-month period with extension will end July 24, 2026. City Council approved this expenditure on March 23, 2026. If the project was terminated sometime after this period up until July 24, 2026, the sellers would retain an additional $10,000 of additional earnest money for a total of $25,000 for the option period of one year.
The first amendment of the Purchase Agreement will extend the feasibility period for an additional 180 days (to January 20, 2027) for an amount of $10,000.
If approved, the next steps include:
1. City Council consideration at a meeting in July
2. If approved by Council:
a. Amendment will be signed by all interested parties
b. Additional $10,000 will be sent to property owners
ISSUE:
Additional time is required to continue project feasibility and development planning on the site. The existing extension will cease July 24, 2026; this amendment will extend the Purchase Agreement for an additional 180 days for $10,000.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
Up to $100,000 has been previously approved by the NBEDC and City Council for the initial contract and extension options. The NBEDC is proposing to release the initial $25,000 to the buyer for the contract period and 90-day option that expires July 24, 2026. The NBEDC is also proposing an additional $10,000 of the initially approved $100,000 to the buyer for 180 more days of the option period.
Recommendation
RECOMMENDATION:
Staff recommends approval of this first Amendment to the Purchase Contract to extend the project feasibility and development planning for two, 90-day periods.